1) How much will the coupon payments be of a 20?-year $1,000 bond with a 9.5?% coupon rate and quarterly? payments?
A. $23.75
B. $95.00
C. $7.92
D. $47.50
2) A $5,000 bond with a coupon rate of 5.5?% paid semiannually has ten years to maturity and a yield to maturity of 6.6?%. If interest rates fall and the yield to maturity decreases by? 0.8%, what will happen to the price of the? bond?
A. rise by $ 285.39
B. fall by $342.47
C. rise by $ 399.55
D. fall by $ 285.39